Estate Planning

You may have already realised that if you have assets in Spain, you will save your beneficiaries stress and money by preparing your inheritance  in advance.

BUT what you may not know is that if you are a resident in Spain, and  you do not prepare the succession with  a proper will, it will be your parents who will inherit instead of your spouse, and that, even if you make a will, the parents have a reserved share.  

Of course, if you have children, it is almost impossible to dispose  of your assets freely if you are a resident in Spain,  even when you have made a will.

 In addition, depending on where you live, there are different legislations in Spain which Spanish citizens can opt out of, but  will automatically be applied to a foreigner living in one of the territories with a special civil law.

 Is it therefore worth investing in proper estate planning ?
We offer a fixed price, tailor made personal report for your estate planning detailing the tax implications, legal costs and further options to organise your inheritance. To give you and your family peace of mind for the future, contact us below.

  • Making a Will – this is the usual way of approaching estate planning.  By drawing up a last will and testament the succession process can be simplified, especially in international inheritances, ensuring your assets are passed on to the beneficiaries and legatees that you choose.  In a last will you can choose the law of your nationality and thus avoid the limitations of Spanish Law, organising  your inheritance  in the most well-ordered, cost-effective manner possible.
  • The Legal Inheritor – if there is no last will a legal inheritor is designated according to a set order starting with the descendants.  In certain areas of Spain which have their own regulations (Foral Law) the set order can vary from Spanish Civil Law, which may have unforseen consequences for your succession if your last residence is in one of these regions.
  • Derecho Foral – do you, or a beneficiary, live in Galicia, Basque Country, Aragón, Navarra, Cataluña or Baleares?  If so, your inheritance will be ruled by Foral Law.  Since 2015, these territorial laws have not only been applied to Spanish nationals but also to expats having their last residence in one of these regions.  Apart from having different regulations regarding the legal inheritor, Foral Law may also affect issues such as the reserved share for forced heirs, the rights of the surviving partner and liability for the deceased´s debts.
  • Estate Planning in International Inheritance – a key issue in international estate planning is to determine the law of which country or territory will be applied to the succession.  That of the last residence of the deceased is the default law,  foreigners who do not state they choose the law of their nationality to rule their succession in the last will (a possibility since 2015) may unintentionally leave their inheritance bound by Spanish State Law or Foral Law limitations which do not allow a completely free choice of beneficiaries or distribution of assets.
  • Gifting – is it a good idea?  Considering the advantages and disadvantages of of gifting as a tool in estate planning.  These include possible tax benefits resulting from individual Comunidad Autonóma regulations, the tax consequences not only for Gift Tax but Capital Gains, Income Tax and Inheritance Tax.  Also, its effects in relation to matrimonial property regimes.
  • Life Insurance – examining the consequences of taking out life insurance as a means of preparing your inheritance.
  • Minors and Disabled People – the inheritance of a child or disabled person has special regulations and various options for for preparing the inheritance and also once the succession has been opened.


Any Questions?

Contact us for specific personal advice for your individual case